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For the year 2007, the company board of directors declared that they will pay RM50,000 bonuses for their employees. Insurance charges were paid on 1/7/2007 for one year coverage. Provision for warranty was based on 3% of the year sales. The last year provision has not been changed. Provision for doubtful debts was based on 2% of the accounts receivable amount. The last year provision has not been changed as well. Interest charges of 8% per annum for the last quarter of the year have not been recorded. Interest is normally paid in January. Depreciation charges are at 10% per annum on straight line basis. As the Company accountant you are required to: a) Raise the journals for the additional information that are given in the above question. b) Raise the amended trial balance as at 31 December 2007

For the year 2007, the company board of directors declared that they will pay RM50,000 bonuses for their employees. Insurance charges were paid on 1/7/2007 for one year coverage. Provision for warranty was based on 3% of the year sales. The last year provision has not been changed. Provision for doubtful debts was based on 2% of the accounts receivable amount. The last year provision has not been changed as well. Interest charges of 8% per annum for the last quarter of the year have not been recorded. Interest is normally paid in January. Depreciation charges are at 10% per annum on straight line basis. As the Company accountant you are required to: a) Raise the journals for the additional information that are given in the above question. b) Raise the amended trial balance as at 31 December 2007

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Descriptions Cash Fixed Assets Salaries Administration Charges Interest Charges Telephone Charges Maintenance Expenses Prepaid Insurance Charges Accounts Receivable Revenue Accounts Payable Provision for Warranty Provision for Doubtful Debts Owner's Capital Long Term bank loan Debit RM 265,000 100,000 200,000 100,000 6,000 2,000 3,000 8,000 50,000 Credit RM 12,000 30,000 500,000 50,000 10,000
Transcribed Image Text:Descriptions Cash Fixed Assets Salaries Administration Charges Interest Charges Telephone Charges Maintenance Expenses Prepaid Insurance Charges Accounts Receivable Revenue Accounts Payable Provision for Warranty Provision for Doubtful Debts Owner's Capital Long Term bank loan Debit RM 265,000 100,000 200,000 100,000 6,000 2,000 3,000 8,000 50,000 Credit RM 12,000 30,000 500,000 50,000 10,000
Other information: For the year 2007, the company board of directors declared that they will pay RM50,000 bonuses for their employees. Insurance charges were paid on 1/7/2007 for one year coverage. Provision for warranty was based on 3% of the year sales. The last year provision has not been changed. Provision for doubtful debts was based on 2% of the accounts receivable amount. The last year provision has not been changed as well. Interest charges of 8% per annum for the last quarter of the year have not been recorded. Interest is normally paid in January. Depreciation charges are at 10% per annum on straight line basis. As the Company accountant you are required to: a) Raise the journals for the additional information that are given in the above question. b) Raise the amended trial balance as at 31 December 2007
Transcribed Image Text:Other information: For the year 2007, the company board of directors declared that they will pay RM50,000 bonuses for their employees. Insurance charges were paid on 1/7/2007 for one year coverage. Provision for warranty was based on 3% of the year sales. The last year provision has not been changed. Provision for doubtful debts was based on 2% of the accounts receivable amount. The last year provision has not been changed as well. Interest charges of 8% per annum for the last quarter of the year have not been recorded. Interest is normally paid in January. Depreciation charges are at 10% per annum on straight line basis. As the Company accountant you are required to: a) Raise the journals for the additional information that are given in the above question. b) Raise the amended trial balance as at 31 December 2007
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